What criteria does an SE need to meet in order to be profiled on the platform? [top]
Each SE is assessed on a case-by-case basis, but in general, an SE must meet the following minimum criteria for a Regular Listing: [top]
- Social Mission: The SE needs to have a clearly defined social and/or environmental mission
- Sustainability: The SE’s business must be financially sustainable, or have a credible plan to become financially sustainable, within a reasonable period of time
- Scalability: The SE needs to demonstrate that its business model is scalable with investment capital
To qualify as a Premium SE – which includes further analysis, onsite screening, investment readiness advice and priority investor outreach – SEs will be further screened on business model, financial viability, social and environmental impact and track record of management.
How much investment capital can an SE expect to raise via Impact Partners? [top]
The platform is designed primarily for SEs seeking to raise from US$100,000 to several million dollars, although smaller amounts may be accommodated on a case-by-case basis. The amount of capital an SE can expect to raise depends on a variety of factors, including its current scale and track record, its valuation, its business plan, the amount of capital required to execute its business plan, and the credibility of its management team.
The amount of capital to be raised should be based on realistic assumptions regarding the growth plan. Ultimately, the amount of capital raised will depend on how many investors are interested to invest in the Social Enterprise and on discussions between the SE and its investors.
What sectors does the SE have to work in for it to be listed on the platform? [top]
There is no set list of eligible sectors for Impact Partners. Impact Partners profiles SE’s operating in a variety of sectors including microfinance, renewable energy, clean water, education, and sustainable agriculture. Impact Partners is able to list SEs from any sector, as long as the SE can demonstrate a clear social and/or environmental mission and impact.
Does Impact Partners charge SE's a fee to list on Impact Partners? [top]
There are two main types of listings for SEs: Regular and Premium.
Regular Listings are free, while Premium Listings have a fee attached: US$6,000 for SE’s looking to raise <
US$2 million, and US$ 15,000 for SE's looking to raise >US$2 million.
Does Impact Partners charge a fee when an SE raises capital? [top]
No, Impact Partners charge a success fee to the investor on any investment capital raised.
What is the difference between a Regular and Premium listed SE? [top]
Regular listed SEs will be published on the Impact Partners platform based on information the SE has provided to Impact Partners during registration. This information will be published in an SE profile and the documents provided by the SE will be available for download by investors where relevant for the investment process.
Premium listed SEs will also have an SE profile based on information provided during registration. In addition to this, the Impact Partners team will conduct further financial and business analysis, onsite screening and create an Impact Summary which they will invite Premium Investors to view.
Prior to the extensive information being published, Impact Partners will assist and guide Premium SE’s in the investment process by providing feedback on the business plan and preparation of the investor presentation. Premium listed SEs will also get priority in investor outreach and planning of investor interaction. Premium SEs also receive discounts on other services provided by IIX and Shujog, such as the frequently requested Impact Assessments, Impact Forums and Impact Academy. Most of the services mentioned above are also available a-la-carte for regular listed SEs but without priority investor outreach.
What requirements must investors meet to join the Impact Partners platform? [top]
Impact Partners requires that all registered investors be institutional investors or accredited investors (or their equivalents) in their respective jurisdictions. Most importantly, Impact Partners also requires that investors confirm their interest in achieving double or triple bottom line returns and promoting the social and/or environmental missions of the companies in which they invest.
What is the capital raising process for an SE on Impact Partners? [top]
The degree and frequency of exposure to, or interactions with, investors differ depending on the type of listing (Regular or Premium). For both listings, Impact Partners will provide the contact details to each party and facilitate an introduction. Once an investor has expressed interest and the SE has agreed, all investment deals will be negotiated and concluded directly between the investor and the SE. The investor and the SE will then directly agree on the structure, terms and conditions of the investment. Impact Partners acts as an introducer and facilitator only and will not be involved directly in the negotiations. If necessary, Impact Partners will be happy to introduce the SE and/or the investor to its Ecosystem Partners, service providers and intermediaries including accountants, bankers and lawyers in the relevant jurisdiction in order to assist in structuring and closing the investment deal.
How long should it take for a deal to close? [top]
Timing of deal closure is very much dependent on the type of investor and the particular deal structure. Finding an investor and closing a deal could range from several weeks to several months depending on the complexity of the deal.
What documents will an SE need to submit for application to Impact Partners? [top]
An interested SE should submit its basic information via the Social Enterprise Registration form on this website. Once the online form is submitted, the website will generate a log-in to the Impact Partners platform where the SE can finalize the registration process.
The SE can also upload documents and information such as data related to social and/or environmental impact assessment. A business plan that includes operational and financial projections. The document may include other relevant corporate information such as incorporation documents, organizational structure, management resumes, key licenses and approvals.
The SE may also upload any other relevant marketing material, including, marketing images, videos, brochures, websites, and social media links.
If the SE does not have an Impact Assessment, how can it receive one? [top]
Asia IIX’s non-profit affiliate, Impact Investment Shujog prepares Impact Assessments for SEs. An Impact Assessment is highly recommended for SEs listed on Impact Partners because many Impact Investors utilize these assessments as a critical component of their investment decisions. Impact Partners also accepts impact assessments performed by other independent third parties, which meet standards of quality and utilize recognized methodologies.
What other advantages are there to being listed on Impact Partners? [top]
Listing on Impact Partners puts the SE in the middle of a powerful network of Impact Investment/SE stakeholders, including other social entrepreneurs, investors, bankers, lawyers, academics, and government officials from around the world. Depending on the type of listing they apply for, SEs will have the ability to be referred to IIX’s Ecosystem Partners such as lawyers, accountants, consultants etc. on a case-by-case basis, and gain access to a unique variety of helpful events and materials, such as Impact Chats, Impact Quarterlies, Impact Forums, Impact Academies, and Shujog’s sector research.
How is Impact Partners different from IIX's other platform, Impact Exchange? [top]
Impact Partners is a private platform connecting sophisticated Impact Investors with a select group of pre-screened SEs that have proven positive social and/or environmental impact. Impact Partners focuses on profiling SEs seeking to raise USD$100,000 or more through a private transaction. Launching in mid-2012, Impact Exchange will be Asia’s first social stock exchange and will enable SEs to raise larger amounts of capital by issuing securities to a broader group of investors on a platform that will facilitate trading in listed securities.
Does Impact Partners also accept early stage SEs? [top]
Impact Partners is focused on SEs seeking growth capital rather than on seed-stage SEs. However, IIX also operates Impact Incubator, where early stage SEs can attract seed stage funding. If you would like to know more about the Impact Incubator, please contact us.